Andrew Bailey: Bitcoin Investors Should Embrace Risk Amid Continued Skepticism

Andrew Bailey’s Warning on Bitcoin

In a rather theatrical display of skepticism, Andrew Bailey, the soon-to-be Governor of the Bank of England, made headlines with his blunt remarks about Bitcoin. During a Treasury Select Committee hearing, he advised anyone considering an investment in Bitcoin to be prepared for a potential wardrobe malfunction—specifically, losing their shirt.

“Be Prepared to Lose Everything!”

At this March 4 hearing, Bailey was vocal about his disapproval of cryptocurrencies. He didn’t mince words when he said,

“If you want to buy Bitcoin, be prepared to lose all your money… [Bitcoin] has no intrinsic value.”

Yes, Bailey described Bitcoin as having “extrinsic value,” making it sound like an enigmatic object left over from a magical show.

Parallels with Buffett’s Views

Bailey’s comments echo the sentiments of Warren Buffett, who famously claimed Bitcoin has no value at all. Like a gavel hitting a wooden bench, both suggest a pessimistic outlook on the digital currency. Bailey is known for his staunch beliefs, criticizing cryptocurrencies since the height of the Bitcoin boom back in December 2017.

Consistency is Key

Bailey’s long-standing caution against digital currencies knows no bounds. Back in 2017, he described the digital asset as “volatile” and an “odd commodity.” His message hasn’t changed, and it seems he’s heading toward his new role at the Bank of England with a firmly held belief: “If you want to invest in Bitcoin, be prepared to lose all your money.” If there’s a gold star for skepticism, Bailey would surely earn it!

What Lies Ahead for Digital Currency?

As Bailey steps into his new role, the Bank of England is still exploring possibilities for a central bank digital currency (CBDC). While former governor Mark Carney was entertaining the idea of welcoming a CBDC with open arms, Bailey’s discontent with Bitcoin suggests a more reserved approach. Representatives from the UK, along with five other nations, are scheduled to convene in April to discuss CBDCs. Will Bailey’s consistent skepticism shape the Bank’s direction? Only time will tell!